Ludco Enterprises Ltd. v. Canada, 2001 DTC 5505, [2001] 2 S.C.R. 1082, 2001 SCC 62 -- summary under Certainty

By services, 28 November, 2015

Before finding that for purposes of the requirement in s. 20(1)(c)(i) that money must have been borrowed for an income-producing purpose in order to give rise to deductible interest, "income" referred to income before deductions, Iacobucci J. stated (at p. 5515):

"Nowhere in the language of the provision is a quantitative test suggested. Nor is there any support in the text of the Act for an interpretation of 'income' that involves a judicial assessment of sufficiency of income. Such an approach would be too subjective and certainty is to be preferred in the area of tax law."

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inferring of subjective test is contrary to the objective of certainty
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